[Kelvin_mu]

Hi guys,

Need your opinion on something. Bought a new 2010 328xi coupe last December. (paid in cash) Total came to around ~$56k CAD after tax.

I live in uptown Toronto (Think Markham/Richmond Hill where all the asians live). I just found a job downtown so I moved down a month ago. Since I work about 15-16 hours a day, I don't get to drive my car at all. And since I don't want to pay for parking in my downtown condominium, I decided to keep my car in my uptown garage.

So i need your opinion on two things:

1. Should I sell? My workload is quite heavy (usually have to work on weekends, so I barely get to drive the car..maybe log 50km a week if I'm lucky)

2. How much do you think I can fetch for the car? I'm going to come out on a limb and say $40k. Too much? Too little?

The car has premium package and roughly ~14,000 km on it.

Thanks for your help

[MOAB]

you take the biggest hit, depreciation wise, in your first year. You are throwing money away if you sell now. But if you have no intention to drive the car for the next couple of years, then maybe you just suck it up.

[SaviorSelf]

If you don't want it sell it, do you really need the opinion of other people. As for price, go to dealerships local and find some comparable models and compare prices. Check autotrader.ca as well. Car values differ in different regions.

[hubble bubble]

Definately worth keeping. When you do get to drive it, like for a date, at least you have a nice car. And you'll be lucky to get much more than $35k - yup, you'll loose 30k.

Of your 56k, 7k was PST & GST. That is lost. Another 2k was freight and PDI, also lost. So the actual CAR cost was more like 47k. Maybe you get 75% of that in a private sale, if you are lucky, which is about $35k. That's $20k in the first year. You'll loose $5k a year for the next 2-3 years (until the warranty expires).

[DimSum]

Yup, if you sell it now your going to get screwed over.

[Bimmer Al]

Keep, unless you really want to lock in a $20k loss

[bobblehead]

Yep! You are in the right area of around $40K. No more. Typically, you will lose about 30% in Year 1.

If you must sell, then list it around $40K due to low mileage and see you can get that. Good luck!

[2kaccordocoupe]

If you don't plan on keeping it dump it, the loss is just going to increase as time goes by.
20% this year, 5% next year and so on. Plus when you factor in insurance etc... the cost keeps going up. Cut your losses now and stop the bleeding.

[Mr. ///M3 RD]

The $40K is right in the ball park so a great loss to you. My recommendation would be to hold on to it, you will need a car from time to time. Also, heaven forbid if you loose that downtown job then you need wheels what then. You worked hard for that $56K investment, if you sell it then you might spend the money. If you keep it you have an ace in the hole so to speak so do hold on to it I say

My 2 cents anyway

[TheRox]

If you dont' mind an older car....you can keep this car for many many years. Its a 328...reliability sould be decent.

[aspiring335]

There's no way he'll only get $35k including tax for the car. A dealer would probably ask $45k plus tax. Also, how is the PST & GST lost? The new buyer will have to pay HST on the purchase, so the PST & GST isn't lost except in the sense that it's part of the overall depreciation. The price is the price is the price.

He could list it for $40k + tax and probably accept $38k + tax ($43k total). Worst case, he has lost $13k, which is pretty crappy, but it's nothing like the $21k in your numbers.

Originally Posted by hubble bubble

Definately worth keeping. When you do get to drive it, like for a date, at least you have a nice car. And you'll be lucky to get much more than $35k - yup, you'll loose 30k.

Of your 56k, 7k was PST & GST. That is lost. Another 2k was freight and PDI, also lost. So the actual CAR cost was more like 47k. Maybe you get 75% of that in a private sale, if you are lucky, which is about $35k. That's $20k in the first year. You'll loose $5k a year for the next 2-3 years (until the warranty expires).

[Kelvin_mu]

Thanks guys, appreciate your responses/opinions.

[w2]

The depreciation to date is a sunk cost: you've already lost that money no matter what you do. The car will never be worth more than it's worth right now, so what you have to do is estimate how much the car will cost you to keep over the next few years (depreciation over and above its current value, insurance costs, parking, maintenance, etc.) and then decide if the cost is worth the use you are likely get out of it over that period. If not, the rational thing to do is sell it. All that matters is what it's worth today versus what it will be worth tomorrow; what it was worth yesterday is irrelevant.

If you hold on to the car but don't use it, you are losing money and gaining nothing in return for it On the other hand, consider the possibility that your circumstances will change again in the next year or so, and you find yourself in need of a car once more.

It's also worth noting that you can probably take a couple hundred cab rides for the price of owning a car like that for one year. If you only take a few car trips a month, cabs and/or rental cars are much cheaper. On the other hand, if driving is a recreational hobby for you, who can say what that's worth?

[Undies]

Originally Posted by w2

The depreciation to date is a sunk cost: you've already lost that money no matter what you do. The car will never be worth more than it's worth right now, so what you have to do is estimate how much the car will cost you to keep over the next few years (depreciation over and above its current value, insurance costs, parking, maintenance, etc.) and then decide if the cost is worth the use you are likely get out of it over that period. If not, the rational thing to do is sell it. All that matters is what it's worth today versus what it will be worth tomorrow; what it was worth yesterday is irrelevant.

If you hold on to the car but don't use it, you are losing money and gaining nothing in return for it On the other hand, consider the possibility that your circumstances will change again in the next year or so, and you find yourself in need of a car once more.

It's also worth noting that you can probably take a couple hundred cab rides for the price of owning a car like that for one year. If you only take a few car trips a month, cabs and/or rental cars are much cheaper. On the other hand, if driving is a recreational hobby for you, who can say what that's worth?

that's what i was thinking, but not so eloquently.

[jasonintoronto]

Originally Posted by w2

The depreciation to date is a sunk cost: you've already lost that money no matter what you do. The car will never be worth more than it's worth right now, so what you have to do is estimate how much the car will cost you to keep over the next few years (depreciation over and above its current value, insurance costs, parking, maintenance, etc.) and then decide if the cost is worth the use you are likely get out of it over that period. If not, the rational thing to do is sell it. All that matters is what it's worth today versus what it will be worth tomorrow; what it was worth yesterday is irrelevant.

If you hold on to the car but don't use it, you are losing money and gaining nothing in return for it On the other hand, consider the possibility that your circumstances will change again in the next year or so, and you find yourself in need of a car once more.

It's also worth noting that you can probably take a couple hundred cab rides for the price of owning a car like that for one year. If you only take a few car trips a month, cabs and/or rental cars are much cheaper. On the other hand, if driving is a recreational hobby for you, who can say what that's worth?

immediately, i also thought "keep the car, the depreciation hit is just tooooooo much". however, what w2 said is right. your loss is a sunk cost and shouldn't factor into your decision.

what you should do is decide a reasonable price for your car, and as many people here have said, 40k does sound reasonable (remember a buyer can get a 2011 for quite a good price these days and it has many improvements) and then decide what is the best use for that money.

for instance, since you don't need the car anymore, are you investing that money? paying down debt? both of those uses are much better than a depreciating asset that gets no use. investing should grow the 40k...maybe 42 or 44k in a year. that 40k turns into 35k in a year of more depreciation if you keep the car (plus insurance/gas) - are you getting value for that money?

good post, w2.

[Evolution_GT]

My take on this, is I tend to think more about controlling my monthly obligations rather than minding the salvage value.

Just think about what you could be doing with the monthly payment you're paying per month on the car (I'm assuming you didn't pay the whole shot up front?).

[samej]

I work 15-16 hours a day, and average 2 nights away from home in a hotel each week. I got to tell you just running errands on the weekend in my 335 is a great pleasure. Forget the money. Does the car make you feel good?

[TheRox]

Originally Posted by samej

I work 15-16 hours a day, and average 2 nights away from home in a hotel each week. I got to tell you just running errands on the weekend in my 335 is a great pleasure. Forget the money. Does the car make you feel good?

Wow...that is a lot of hours for an Ottawa guy! Props.

[MOAB]

Originally Posted by samej

I work 15-16 hours a day, and average 2 nights away from home in a hotel each week. I got to tell you just running errands on the weekend in my 335 is a great pleasure. Forget the money. Does the car make you feel good?

what a life, not.

[samej]

Enterprise Software Sales - Pre-Sales Consultant, relatively small company, covering mostly Montreal, Toronto, but also wherever the business takes me in Canada. On the positive side my family stays in really nice hotels for free when we vacation!

[bolty]

This is a good thread.

I hardly ever drive my car these days because I've been so freaking busy with real life. Sometimes I feel its such a waste sitting in the garage and not getting driven and the payments I make are just going down the drain.

But what w2 stated really hit home with me:

Originally Posted by w2

if driving is a recreational hobby for you, who can say what that's worth?

The practical side of me says that I can probably take those monthly payments and do something more practical with it. The other side of me says coke and hookers are alot more fun . Iam keeping the car

[Perseus83]

Originally Posted by bolty

This is a good thread.

I hardly ever drive my car these days because I've been so freaking busy with real life. Sometimes I feel its such a waste sitting in the garage and not getting driven and the payments I make are just going down the drain.

But what w2 stated really hit home with me:



The practical side of me says that I can probably take those monthly payments and do something more practical with it. The other side of me says coke and hookers are alot more fun . Iam keeping the car

Exactly. Practically speaking, for the majority of people, a BMW isn't necessary. A car can be had for much less.

However, it isn't always about what is practical